What Happens to Your HSA or FSA After You Quit Work?

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

What happens to HSAs and FSAs

When you leave your job, you may wonder what happens to your Health Savings Account (HSA) or Flexible Spending Account (FSA). It's important to understand the options available to you so you can make informed decisions about your healthcare savings.

If you have an HSA or FSA through your employer, here's what typically happens when you quit work:

HSA rules after quitting work

• Health Savings Account (HSA):
• Flexible Spending Account (FSA):

• If you have an HSA, the account is yours to keep. You can continue using the funds for eligible medical expenses even after leaving your job.
• You can't contribute to your HSA from your new employer once you've left your current job, but you can still use the existing balance.
• If you have a high-deductible health plan with your new employer, you can continue making contributions to your HSA as long as you remain eligible.

If you have an HSA, rest assured that it remains yours even when you change jobs. You can still access those funds for eligible medical expenses, which can be a big relief. However, once you leave, you won't be able to contribute from your new employer’s plan unless you have a high-deductible health plan with them.

FSA rules after quitting work

• FSAs are a bit different. Once you leave your job, you typically lose access to your FSA funds unless your employer offers a grace period or if you're eligible for COBRA continuation.
• Certain expenses incurred after you've left your job may still be eligible for FSA reimbursement if incurred during the plan year or grace period.

On the other hand, with an FSA, there are some important caveats. Generally, if you leave your job, access to those funds is cut off unless your employer provides a grace period or you qualify for COBRA. It's essential to check the rules specific to your FSA to avoid losing any potential reimbursements.

Why review your specific plan rules

It's crucial to understand the rules of your specific HSA or FSA plan to avoid any unexpected losses or penalties.

Leaving your job and wondering about your Health Savings Account (HSA) or Flexible Spending Account (FSA)? You’re not alone! Many people find themselves in the same boat when making a career transition.